as we all know, ...When it comes to buying real estate, Patience, prudence, insight, educated decision making and a little luck can present you with promising opportunities.

However, financial professionals, will often tell you that "Risk evaluation" is probably the most important criteria one must consider before making the decision to buy.

Risk/Reward can be defined as the amount of risk one must take to provide a similar amount of return on investment. Generally, the higher the risk, the higher reward.

Here are 3 thoughts I recommend for all buyers to consider when evaluating risk before deciding whether or not your next Deal really is good as it looks.

1) Comfort level - too much stress, fear , and unhappiness, are lingering effects of taking a risk larger than you may want to handle

2) Can you afford a loss - if there is one thing this difficult period in real estate has taught us, is that real estate is not guaranteed to go up forever, ask yourself if you can afford to hold your real estate years and years past what you initialyl hoped

3) Opportunity cost - deciding not to buy that "good deal" may be the best investment you ever make. Experts will tell you that there are always other opportunities. If you have the money in your pocket and the ability to make a decision when it presents itself you may find that opportunity that you could not have take advantage of if you had purchased that deal on which you passed.

We All take Risks in Life; personally and professionally. The purchase and finance of a home is a risk that most people take. Historically, it has been very rewarding.

However, be prudent, make sure you have done your research, have double checked your finances, and have properly evaluated risk;The deal that sure looks good, may not be as good as it looks.

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Copyright © 2008 By James Wexler, All Rights Reserved. *"This Deal Sure Looks Good ", .... I think I should buy*

Contact James Wexler (480) 221-8080 for Internet Marketing Coaching and Consulting.

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James Wexler ABR, GRI, MRE is an Associate Broker at Coldwell Banker Residential Brokerage, an active real estate agent and real estate web marketing consultant for industry professional and author of www.Wexzilla.com ‘s Daily Blog.